Both the House and Senate have now passed their respective versions of the state operating budget, setting the stage for conference negotiations to reconcile the differences between the two. As the budget conference committee begins its work, we will be actively engaging with conferees to express concerns about the proposed cut to the Career Connect program—a vital initiative that helps connecting industry and education to create sustainable workforce pipelines.
In addition, we will be closely monitoring and communicating with legislators about the use of Workforce Education Investment Account (WEIA) funds. Ensuring these dollars are directed toward their intended purpose—expanding access to high demand degree programs—remains a top priority.
At a press conference last week, Governor Bob Ferguson outlined five key conditions that any budget must meet for him to sign it. Rejecting the budgets proposed by majority legislative Democrats, he stressed the following requirements:
- The Rainy Day Fund (Budget Stabilization Account) must remain untouched. While the Senate’s proposal draws from these reserves, the House’s version does not.
- The budget must be based on realistic revenue projections, rather than the legally permitted 4.5% projection. Ferguson supports the Senate’s approach in this regard.
- New spending should be minimal due to current fiscal constraints. “This is not the time for major investments in any program, no matter how worthwhile,” he cautioned.
- The budget must include significant savings and efficiencies—amounting to billions—while preserving essential services like K-12 education and public safety.
- It cannot rely on revenue sources like the proposed wealth tax that may face legal challenges and risk being overturned in court.
Ferguson’s firm stance will be a challenge for lawmakers as they work behind closed doors toward a final budget agreement by Sine Die. The Seattle Times covered the governor’s press conference and the implications for lawmakers’ efforts to strike a budget deal. Read the article here.
A new bill introduced last week would raise taxes on tobacco and vape products and ban flavored varieties. HB 2068 proposes an additional $2 tax per pack of cigarettes, with adjustments every three years for inflation. It also sets the tax on vape and alternative nicotine products at 95% of the taxable sales price.
Importantly for LSW members, the first $25M in revenue would be split evenly between the Andy Hill CARE Fund and public health initiatives. Any revenue beyond that amount would go to the state general fund.
Earlier in the session, similar legislation to ban flavored products failed due to concerns over an estimated $234M loss in state revenue. However, this new bill is considered more revenue-neutral and has been designated as “necessary to implement the budget.” It is currently awaiting a full fiscal note to assess its estimated revenue impact.
LSW Policy Priorities
- ESHB 1483, right to repair, was voted out of the Senate Environment, Energy and Technology Committee on Tuesday. The committee adopted an amendment to clarify the exemption for medical devices. The amended bill was referred to the Senate Rules Committee.
- SB 5455, making technical corrections to the Andy Hill Cancer Fund, passed out of the House Health Care Committee on Tuesday. It’s now in the Rules Committee.
- ESSB 5594, relating to biosimilar medicines, died in the House Health Care Committee. During executive session, Rep. Thai asked that the bill be deferred to continue work on the bill during the interim.
LSW Urges Congress to Restore Immediate R&D Expensing
Life Science Washington joined all of our sister state biotech associations in signing a letter urging Congress to restore immediate R&D expensing by passing the bipartisan American Innovation and R&D Competitiveness Act (H.R. 1990). Since 2022, changes to Section 174 of the tax code have forced companies to amortize R&D costs over five years—diverting critical R&D funds from early-stage biotechs working on life-saving treatments.
LSW member companies joined us in urging the previous Congress to take this action, and we continue to advocate alongside them to ensure this priority is addressed. The nationwide coalition, coordinated by the Council of State Bioscience Associations (CSBA), emphasized that restoring immediate expensing is existential to pre-revenue, early-stage life science startups and is essential to sustaining the U.S. biotechnology pipeline and supporting local economies.
Have questions, comments, or concerns about these bills or any other pending legislation? Get in touch with LSW’s Public Affairs Manager, Curtis Knapp.